Finance

Bond Traders Hedge for Both Cuts and Hikes After Fed Division

A rare opportunity is opening up in rates derivatives underlying the $31 trillion Treasury market: Division at the Federal Reserve has traders placing bets on interest-rate cuts next year while also hedging for a hike.

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Bloomberg
May 1, 2026·1 min read
Bond Traders Hedge for Both Cuts and Hikes After Fed Division

Image: Bloomberg

A rare opportunity is opening up in rates derivatives underlying the $31 trillion Treasury market: Division at the Federal Reserve has traders placing bets on interest-rate cuts next year while also hedging for a hike.

Original article

Bond Traders Hedge for Both Cuts and Hikes After Fed Division

Published by Bloomberg

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